Buying an investment property brings with it a lot of choices, but rest assured, there are certain features which every investment property owner should consider increasing their property’s rental yields and ensure value growth.
1. An area of strong economy and high employment
The aim of an investment property is returns. Whether it’s in rental yield or capital gains property typically performs better when there is more demand. Before purchasing make sure to do some research on the industry prospects of the city or suburb – is it primed for growth? University areas can also be a good option as there will be a constant rental demand from students, though likely at a lower price.
Find the spots with employment growth in the pipeline, and you might have found your next investment gem.
2. Transport and public amenities
A great indication of an area’s growing economy is investment in the public infrastructure. A property closer to transport links and amenities like shopping centres will be a greater attraction.
3. Car parking
As Australia’s cities get even more crowded, the feature to guarantee your property’s appeal is allocated car parking space. With single car parking spaces in central locations going for thousands of dollars, ensuring your property has room for vehicles dramatically increases its value, and so the return on your investment.
4. Level of scarcity
A property investment can often feel like a bit of a gamble. How long will it take till you get a full return on the price you paid and are you certain that it will retain its value? One thing that will ensure capital growth is consistent demand. Simply put, if people want your type of property but there are few available, you’re likely to be very successful. Remember that scarcity doesn’t have to mean very rare, rather a desired location, such as a certain neighbourhood or an architectural style.
5. Think about the things you can’t change
While renovation and refurbishment can do a lot to a property, you can’t change the underlying features. Plenty of space and a well-designed floor plan is a timeless appeal that will consistently be desirable to both renters and buyers. It is also important to consider the impact of any outdoor space and even the communal spaces around your property. A good street position away from loud roads or train tracks will enhance your house, as will a well-integrated outdoor space.
If you are looking to take on the challenge of purchasing an investment property and want to find the ideal home loan for you, contact us today.